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CH2M HILL Lockwood Greene Wins $125 Million-Plus Gypsum Wallboard Plant

CH2M HILL Lockwood Greene Wins $125 Million-Plus Gypsum Wallboard Plant

SPARTANBURG, SC, 03 April, 2006 — CH2M HILL Lockwood Greene announced today it has been awarded an engineer-procure-construct (EPC) project of more than $125 million by American Gypsum Company, a subsidiary of Eagle Materials, Inc.

CH2M HILL Lockwood Greene's scope of work includes the integrated EPC services for this three-building, 700,000 sq. ft. facility near Georgetown, South Carolina.

When completed, the plant will produce 750 million sq. ft. of gypsum wallboard per year. American Gypsum expects that 100 new manufacturing jobs will result from this new plant expansion.

"CH2M HILL Lockwood Greene has been a valued partner during our continuing construction expansion, and we look forward to working with them again on this expansion project," said Dave Powers, President, American Gypsum Company. Continuing strength in residential housing construction and a recovering commercial construction market have led to steady growth for the gypsum wallboard industry.

Roebuck Buildings of Roebuck, South Carolina, will be a subcontractor to CH2M HILL Lockwood Greene, as well as Richardson Grading, which will provide the site work, grading and underground utilities. Construction will begin April 1, 2006, with a schedule to completion of approximately 18 months. There are expected to be 200 professionals on site at the construction labor peak.

"We are pleased to be able to continue to assist American Gypsum in their expansion plans, and we look forward to continuing our business relationship with them," said Michael Gearhart, Director, Manufacturing, CH2M HILL Lockwood Greene. Gearhart also said that CH2M HILL Lockwood Greene, in keeping with its environmentally friendly mission, is happy to be aligned with American Gypsum and its environmentally responsible manufacturing process, as well as aiding in increased economic investment and jobs in South Carolina. To date, CH2M HILL Lockwood Greene has $1.5 billion (total construction value) in projects in the growing building materials market.

Upon completion, the new plant will be supplied with synthetic gypsum under a long-term supply agreement with Santee Cooper, South Carolina's state-owned electric and water utility. Santee Cooper's coal-fired power plants will generate a synthetic gypsum by-product as the result of using scrubbing technology to reduce sulfur dioxide emissions. By utilizing the synthetic gypsum in its gypsum wallboard production, American Gypsum will convert what otherwise would be waste into a valuable building product, thus making this environmentally friendly. Additionally, the gypsum paper that American Gypsum uses is made from 100% recycled paper fiber creating a finished product from essentially 100% recycled materials.

The new wallboard plant expands American Gypsum's geographical footprint into a growing South Carolina economy. The new plant will also allow American Gypsum to serve its customers on a national level with a much improved nationwide distribution network.

American Gypsum is presently the nation's fifth largest producer of gypsum wallboard. American Gypsum operates four gypsum plants with five production lines, and annually sells nearly three billion sq. ft. of wallboard.

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